Illinois
93.4
Composite, US avg = 100
Relocation Comparison | IL vs FL
Illinois vs Florida Cost of Living 2026: 93.4 vs 102.8
A counterintuitive comparison: Illinois is cheaper than Florida on the C2ER composite, but Florida has no income tax and Illinois has the second-highest property tax in the country (1.97 percent effective). Add Florida's home insurance crisis and the picture depends entirely on income, age, and lifestyle. Side-by-side breakdown below.
Florida
102.8
Composite, US avg = 100
Gap
10.1%
Florida more expensive on composite
Side by side
All key cost dimensions, compared
| Metric | Illinois | Florida | Cheaper |
|---|---|---|---|
| Composite COL index | 93.4 | 102.8 | IL |
| Housing sub-index | 80.7 | 107.3 | IL |
| Median home price | $262,500 | $398,500 | IL |
| Median 2BR rent | $1,220/mo | $1,620/mo | IL |
| Groceries sub-index | 99.2 | 101.5 | IL |
| Utilities sub-index | 97.3 | 101.2 | IL |
| Transportation sub-index | 106.5 | 105.8 | FL |
| Healthcare sub-index | 102.5 | 96.2 | FL |
| State income tax | Flat 4.95% | None | FL |
| Property tax (effective) | 1.97% | 0.80% | FL |
| State sales tax | 6.25% | 6.00% | FL |
| Median household income | $72,205 | $63,062 | IL |
| Uninsured rate | 6.2% | 12.7% | IL |
| Avg home insurance premium | $1,400-2,000/yr | $3,500-6,500/yr | IL |
Sources: BEA Regional Price Parities, C2ER Cost of Living Index, Census ACS 5-year, Tax Foundation, EIA, Florida Office of Insurance Regulation, Illinois Department of Revenue. See methodology.
Salary equivalency
What an Illinois salary buys in Florida
Because Illinois is cheaper than Florida on the composite, to maintain Illinois purchasing power in Florida you actually need MORE Florida dollars (the inverse of the usual pattern). The flip side: the no-income-tax saving in Florida partially offsets this.
Illinois $100,000
$110,064
Equivalent purchasing power needed in Florida.
Less the FL income tax saving of about $4,950
Illinois $150,000
$165,096
Equivalent purchasing power needed in Florida.
Less the FL income tax saving of about $7,425
Illinois $200,000
$220,128
Equivalent purchasing power needed in Florida.
Less the FL income tax saving of about $9,900
Illinois wins on
Where Illinois is the cheaper state
Housing cost. Median home Illinois $262,500 vs Florida $398,500, a 34 percent saving. Chicago is meaningfully cheaper than Miami, Tampa, Orlando, or even Jacksonville on housing.
Home insurance premium. Illinois average homeowner premium $1,400-2,000/year vs Florida $3,500-6,500. The Florida insurance crisis since 2022 has dramatically widened this gap.
Healthcare access. Illinois uninsured rate 6.2 percent vs Florida 12.7 percent. Illinois has expanded Medicaid; Florida has not. Provider networks in Chicago (Northwestern, University of Chicago, Rush) are among the strongest in the country.
Median household income. Illinois $72,205 vs Florida $63,062. Illinois wages are meaningfully higher, partially offsetting cost differences.
Public transit. Chicago's CTA, Metra, and Pace networks are among the most extensive in the country. Most Florida metros are car-dependent.
Florida wins on
Where Florida is the cheaper state
No state income tax. Zero vs Illinois flat 4.95 percent. On a $200,000 income, the annual saving is about $9,900.
No estate tax. Florida has no state estate tax. Illinois estate tax kicks in above $4 million estate value with no marital deduction match to federal, making it stricter than many other states.
Property tax. Florida 0.80 percent effective vs Illinois 1.97 percent (second-highest in the country). On a $400,000 home, Florida $3,200/year vs Illinois $7,880/year, a difference of $4,680.
Climate (for many). Mild winters everywhere; sub-tropical South Florida. Chicago winters are long and cold with snow from November through March in many years.
Retirement tax treatment. Florida has no state tax on retirement income. Illinois exempts retirement income from qualified plans and Social Security, but the high Illinois property tax often makes Florida the better retiree option financially.
Decision framework
Who should move, who should stay
Move from Illinois to Florida if: You are a retiree with substantial taxable income who would benefit from no state income tax on Social Security, pension, and IRA distributions. You are tired of Chicago winters and high property tax. You can accept the home insurance cost increase. You have a network in Florida (family, friends, snowbird community).
Stay in Illinois if: You earn under roughly $100,000 (the income tax saving is smaller than the housing-cost difference). You value strong public transit and high-density urban living that Chicago provides. You have school-age children in high-performing Chicago suburb districts (New Trier, Hinsdale, Naperville). Your career is concentrated in Chicago-based industries (finance, healthcare, professional services).
Counterintuitive insight: For middle-income working households, Illinois is often cheaper than Florida on net once Florida home insurance and property tax are accounted for. The headline "no income tax" advantage is real but smaller in practice than most relocators assume. The clear Florida win cases are retirees with high taxable retirement income, and high earners ($300,000+) where the income tax saving scales aggressively.
For income-tax-specific analysis see the comparable page on incometaxbystate.com. For no-income-tax-state options more broadly see noincometaxstates.com.
Frequently Asked
Illinois vs Florida, answered
Is Illinois really cheaper than Florida?
On the C2ER composite, yes. Illinois 93.4 vs Florida 102.8. The driver is housing (IL 80.7 vs FL 107.3). Illinois median home $262,500 is one of the cheapest among populous states; Chicago is meaningfully cheaper than Miami, Tampa, or Orlando on housing. The reason Florida is the perennial relocation target despite this is income tax (Florida zero vs Illinois 4.95 percent flat) and weather, not headline cost of living.
What is the Illinois income tax rate?
Flat 4.95 percent on most income, with no graduated brackets. The Illinois Department of Revenue publishes the schedule. A 2020 ballot initiative to allow graduated rates failed at the ballot. Illinois has no separate capital gains rate; gains are taxed at the flat 4.95 percent. Federal income tax applies separately. The flat rate is mid-pack among states with an income tax.
Why is Chicago property tax so high?
Illinois has the second-highest effective property tax rate in the country at 1.97 percent statewide (only New Jersey is higher). Cook County (Chicago) has among the highest effective rates within Illinois. The high property tax is largely a legacy of underfunded public pensions (the state and Chicago have substantial pension obligations relative to peers), which puts upward pressure on local revenue needs. On a $400,000 home, Illinois property tax is roughly $7,900/year vs Florida $3,200/year.
Doesn't the Florida no-income-tax saving wipe out the Illinois housing-cost advantage?
Partially. For a $150,000 household income, the Florida income tax saving is roughly $7,425 per year vs Illinois. Net of higher Florida housing cost (median home $398,500 vs Illinois $262,500, a $136,000 difference that translates to about $9,000 per year of additional mortgage at 6.85 percent on the 20 percent down portion), the picture is roughly a wash for many middle-income households. At higher incomes ($300,000+), Florida's no-income-tax saving becomes harder to offset.
Is the Florida home insurance cost really that much higher?
Yes, and it has gotten worse since 2022. Average Florida homeowner premium $3,500-6,500 per year vs Illinois $1,400-2,000. Hurricane-exposed coastal Florida counties (Miami-Dade, Broward, Lee, Collier) carry the highest rates. Many private insurers have exited the Florida market; the state-backed Citizens Property Insurance now insures a meaningful share. For Florida homebuyers, the annual insurance premium often exceeds the property tax bill, a reversal of the typical US pattern. Illinois has no such structural insurance pressure.
What about Chicago vs Miami for retirement?
Florida wins decisively for most retirees. Florida has no state income tax (so Social Security, pension, IRA distributions are all untaxed at the state level), no estate tax, and a Save Our Homes assessment cap (3 percent or inflation, whichever is lower) that protects long-term homesteaders from property-tax escalation. Illinois taxes retirement income (the major exception is that Illinois fully exempts Social Security from state tax, plus retirement income from qualified plans). The high Illinois property tax is the dominant retirement-budget pressure. Most Chicago-to-Florida retirees find the move financially favourable on net.
Is downstate Illinois (Springfield, Peoria) a cheaper alternative?
Yes, materially. Downstate Illinois (Springfield, Peoria, Bloomington, Rockford) runs roughly 80-90 on the Regional Price Parity scale vs Chicago metro 100-110. Median home in many downstate cities is under $180,000. The flat 4.95 percent income tax applies statewide, but the property tax structure varies; some downstate counties have property tax rates above the state average because of local levy structures. For a remote worker, downstate Illinois is one of the cheapest US options.